EB-5 program extended. On December 15th, one day before the EB-5 Regional Center program was set to expire, the House and Senate leadership have extended the EB-5 Immigrant Visa Program until September 30, 2016. No part of the program will change.

What does it mean for investors?

There will be no increase in the minimum investment amount and no change in definition of the Targeted Employment Areas (TEAs). The I-924, I-526, and I-829 will all continue as normal to be accepted, processed and adjudicated.

What is the EB-5 Program?

The EB-5 program allows foreign investors to invest at least $500,000 or $1 million (depending on the area) in a commercial enterprise that will boost the U.S. economy and create at least 10 full-time, permanent jobs for qualified U.S. workers.

Where are EB-5 investors investing their funds?

Most of the investor funds come in through regional centers, which are private-sector entities that pool investor funds to develop large-scale projects like hotels or condominiums.

How close did a new bill come to passing?

In November 2015, the Senate and House circulated a draft produced by the House and Senate Judiciary Committees to the EB-5 industry.

This draft came close to compromise that would have authorized the EB-5 regional center program for another 5 years, but members of the EB-5 industry provided feedback and criticism of the draft.

The EB-5 industry advocated for strong integrity and enforcement measures.

Why was the EB-5 Program "extended"?

While the negotiations and changes were significant and extensive, there was agreement that more changes were necessary before the bill could be workable.

They needed more time to negotiate, study, and receive additional feedback to make the bill successful.

The request for a one-year extension was approved.

The compromise bill that was almost passed, would have raised the minimum investment from $500,000 to $800,000 and it would have imposed a new $10,000 filing fee per EB-5 investor.

What are critics of the EB-5 Regional Center Program saying?

There are many critics of the EB-5 program who are upset about developers getting funding at the $500,000 level, funds that are designated for targeted employment areas (rural areas and high-unemployment areas) and using these capital investments to develop luxury projects in affluent neighborhoods.

Critics say they are gerrymandering and they are calling for an end to the EB-5 regional center program or a tightening of these loopholes that take investments away from rural areas.

Why are developers attracted to the EB-5 Program?

Developers, particularly in New York, are drawn to this program because it offers them a low interest way to raise a lot of capital. Foreign investors are often times more interested in the green card than the return on their investments, so developers can raise a lot of capital with little to no interest, while a bank loan would have a high interest.